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Daily Archives: March 20, 2010

Peter Schiff refutes Paul Krugman

Peter Schiff’s rebuttal to Paul Krugman.

Economists jousting on China’s exchange rate, part 2

In this video, economists and investors summarize their position toward Chinese Yuan. These includes:

Paul Krugman – 2008 Nobel prize winner in economics
Stephen Roach – Morgan Stanley Asia Chairman, former chief economist at Morgan Stanley USA
Joseph Stiglitz – 2003 Nobel prize winner in economics
Jim O'neil – Chief economist at Goldman Sachs
Jim Rogers – Investor, former partner with George Soros

link to the video

My position on this is:

1) Yuan will appreciate;
2) Economic models are not reliable to gauge Yuan's undervaluation;
3) Political pressure from the US won't do any good;
4) Yuan's appreciation will not solve US' trade deficit problem, and American consumers will feel the pinch.